Marketing Plan (Research project)

Standard

Company G

3-Year Marketing Plan

 

Introduction

Company G has a long and well-established history in the electronics marketplace. Its XG Brand in particular is known worldwide for quality products and the logo is instantly recognized on store shelves. The “Super G Combination Wireless Phone and Media Stereo Headset” is a new product for the company, hereafter referred to in this plan as the “Super G” or “SG”.  Moving into the personal media segment of the market is a natural product development strategy for the company. Its position considering production efficiencies and brand recognition will prove to be a winning and profitable combination for all stakeholders.

Mission Statement

“We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.”

The Product

The Super G is a wonderful new device in the personal media and telecommunication market that pairs a noise-reduction, retractable boom microphone equipped, and Bluetooth-technology enabled communication device with a stereo dual-ear personal media-listening device. The device is lightweight and comes with a variety of headset wearing options to make it universally appealing to the target market. The device also has an input jack for non-Bluetooth enabled media devices.

The SG will simplify any users listening experience when combined with a media device. Its controls are simple and intuitive once linked to a device. It is useful for activities ranging from driving to exercising. This suite of features improves quality of life by making it simpler to access media and communication while on the go without having to juggle devices. Its sleek but rugged design and intuitive interface make it more convenient to use than other products on the market. The pairing of the two previously separate devices into one unit serves both elements of the mission statement.

Target Market

Personal media and wireless communication devices have become ubiquitous in modern culture, in use today by every segment of American demographics from students to the elderly, wealthy to lower middle class and an array of occupations and activities from driving and commuting to exercising. Thus, the SG will target a vast but clearly defined market: all users of wireless communication and personal media devices.

 

Competitive Situation Analysis

Consumer Product Classification

Small electronic devices in the personal media and communication market are typically purchased with at least some background knowledge beforehand. Consumers will research at length different brands and features hoping to only need to purchase a single unit and use it until it breaks or a more modern unit becomes available. The reputation of a particular brand is often of particular importance and consumers often develop brand loyalties for their devices. Consequently, shoppers will often pay more for their preferred brand and list of features than for other products. They will also go to greater lengths to find these products.

These elements combine to place the Super G solidly in the Specialty product Classification.

 

Analysis of Competition using Porter’s 5 Forces Model

Competitive Rivalry  There are a fair number of competitors in this market, however, most product lines are of inferior quality. The basic model Super G is top shelf for this device. Company G has a solid customer loyalty base that will help establish the new product. In addition, whereas similar products may be almost disposable in their quality, the exceptional quality of the Super G will essentially remove the risk of switching. Production is at existing facilities, so exit risks are minimal as well.

Threat from New Entrants  The production process used by Company G provides significant economy of scale and would be difficult to duplicate.  It would take considerable time and investment for a competitor to design a comparable product and get it to market. Given the low cost of production versus the sale price, the company also has a wide margin for competition.

Threat from Buyers  The SG will be marketed solely through retail distributors. Early marketing plans are light on volume discounts to allow for future negotiations of volume pricing. In addition, no exclusivity is promised to any distributor and Company G may elect to develop a direct sales marketing plan in the future as a fallback. Most distributors will be vendors of many products and brands and will probably have similar products, yet they will carry the SG as a high-end offering.

Threat from Suppliers  There are two possible threats from suppliers, one is for raw materials and the other is for component parts. For the raw materials, Company G should continue to search for other sources to provide assurance of material availability. For the components, the company should pursue production contracts to ensure supply while at the same time explore possibilities to produce them organically.

Threat from Substitutes  Right now, most consumers are using two separate devices to achieve what the SG does. Given time, the ease of use and convenience of the SG will become known and be considered the standard by which others are compared. Some similar devices of inferior quality and price are available and are not competition for the SG. Marketing will ensure that the SG is available from both chain and online retailers to ensure availability.

SWOT Analysis

There are other strategic elements to consider for the marketing plan, both intrinsic and external. To analyze these, the components have been entered into a SWOT Analysis. Overall, the company looks good in the analysis internally, starting from a position of strength with few intrinsic weaknesses. Externally, the opportunities are much stronger than the threats. The threat, however, will need to be monitored as time goes by.

STRENGTHS  *indicates core competency

  • Superior name recognition*
  • Strong financial position*
  • Product is most reliable in industry

WEAKNESSES

  •  New suppliers of raw materials
  •  Reliance on 2 components from outside vendors
  •  Product is in a new market segment for company

OPPORTUNITIES

  •  Concept is still new
  •  Large market potential
  •  Many possibilities for product expansion

THREATS

  •  Established competitors
  •  Sales are contingent on separate product
  •  Concept will be duplicated

 

Strengths

The first core competency to acknowledge is the history and position of Company G. The company has been in the electronics business a long time and its brands are well known. Its products have an overall reputation for quality and this will definitely be a boost as the SG comes to market.

The next core competency is the company’s strong financial position. Company G enjoys both a high credit rating and a low debt-to-equity ratio. This puts it in a strong position to both make the initial launch of the SG and support its future expansion.

Next, consider the high quality of the product itself. Company G has devoted a considerable amount of research and engineering into the SG concept. This effort has paid off with what will be the highest quality product of its kind on the market.

Weaknesses

There are several weaknesses inherent to the Super G. The first of which is new suppliers of raw materials for use in production. Since these suppliers are new, relationships with them are still developmental. While pricing arrangements are secure for product launch, there are no guarantees that they will be honored in the future.

Again, the need to purchase two subassemblies for the device from outside vendors is another weakness. While prices and supply are secure for now, future prices for these units cannot be assured.

The Super G is in a new market segment for the company. Company G knows little about personal media or wireless communications products or their industry. While extensive research was done on the design of the SG, the company is vulnerable in this market due to lack of expertise.

Opportunities

The concept of this integrated design is new enough that there is plenty of opportunity to perfect it and become the standard of the market.

The potential of this market is virtually limitless. The number of personal devices that can link to the SG is in the hundreds of millions worldwide. Each one of those devices is a potential sale.

While the SG will launch with one basic design there will be many opportunities for future customization and accessories to personalize the device.

Threats

There are established firms already marketing similar devices of inferior quality. If they ever upgrade any of those designs, they could represent a threat.

Sales of this product rely on a consumer already owning and being familiar with another product. Changes in the wireless personal device field could affect the viability of the SG.

This concept will be duplicated in the future. Any future designs that prove superior to the SG and are priced competitively could supplant the targeted market position.

 

Market Objectives

Product Objective

Launch the Super G headset and produce sales that will not only make the project break-even but increase overall company sales profits by 3 percent within 3 years.

Price Objective

Suggested retail price for the Super G is $90. Basic wholesale price is $65 per unit. Bulk discounts will be available. Total cost to the company is roughly $45 per unit.

Place Objective

Company G will use retail distributors for all sales of the Super G. Marketing outlets will be established in traditional storefront operations and online.

Promotion Objective

Create and build customer awareness of the Super G to generate sales.

Marketing Strategies

To facilitate the above objectives, a series of strategies has been developed that will follow in stages the primary objective of achieving profitability within three years. Once the device penetrates and is established in the market, new variations on the product will be introduced to keep sales invigorated. At one year, the Super G will become available in colors. At two years, a lighter weight model will be released. These steps will ensure marketing goals are met.

Product Strategies

  • Ensure desired initial inventories are present in all outlets prior to launch.
  • After initial production runs, the SG will be released in five different colors at approximately one year after launch.
  • At the two-year launch anniversary, a new lighter weight model will be released.

 

Price Strategies

  • Distributors will be given a “net 30” payment plan after opening accounts
  • Volume discounts will be applied at the rate of 7% for a whole pallet, and 3% for a half pallet order.
  • An additional 3% discount will be offered for accounts that are paid immediately.
  • Delegate an online account representative.
  • Delegate an account representative for large chain stores.
  • Delegate or establish a new account representative position to service media and cell phone niche markets.
  • Create an online advertising presence and create campaigns for launch and each subsequent product expansion.
  • Advertise nationally and in select local media using magazines and store flyers.
  • Provide periodic product demonstrations at select locations and create infomercials from them for online release.

Place Strategies

Promotion Strategies

 

Explanation of Strategies

Each of these strategies works in a logical sequence to support the main objectives. The product and promotion strategies will work off each other to support the stages of the planned product expansion. The location strategies ensure that all likely sales opportunities will receive adequate representation. Finally, the sales strategies incentivize bulk purchasing and 0 balances while leaving sufficient leeway for further development coinciding with increasing sales.

Tactics and Action Plan

These individual steps will be taken to execute the above strategies. Each action will have a clearly delineated timeline or frequency of occurrence and the individual leaders responsible for their completion. As the launch unfolds, additional tactics may need to be utilized to keep up with demand and the changing market.

Product Action Plan

Tactic

Due Date

Responsible Party

Set up a meeting with store or department managers for all accounts to confirm projected sales match inventory Prior to launch Product Manager
Oversee subsequent runs available in five colors to be released one year after initial launch Two quarters post launch Product Manager
Beginning immediately after launch, product manager will coordinate the design and production of a lighter weight model to be released on the two-year launch anniversary Two years post launch Product Manager

 

Price Action Plan

Tactic

Due Date

Responsible Party

When all new distribution accounts are opened, sales manager will ensure credit checks are and limits established Prior to launch and ongoing as new accounts are established Sales Manager
Sales agents will communicate discounts to encourage volume sales. Ongoing Sales Manager
Sales agents will communicate discount to encourage immediate payments. Ongoing Sales Manager

 

Place Action Plan

Tactic

Due Date

Responsible Party

Establish sales account and associated advertising with Amazon.com Prior to launch Sales Manager
Integrate new products/accounts with territories of existing company representatives. Prior to launch Product Manager
Create sales arrangements for space and service at music stores, cell phone stores, and car and home audio stores. Launch date to one year Sales Managero one yearat music stores, cell phone stores, and car and home audio stores.

 

Promotion Action Plan

Tactic

Due Date

Responsible Party

Create online advertising portfolio by establishing accounts with Amazon, Facebook and GooglePlus First quarter after launch Advertising Manager
Purchase advertisements in selected magazines and arrange for features in store flyers Launch date Advertising Manager
Design script, set for product demonstrations, and create traveling demonstration crew. First quarter after launch Product Manager

 

 

 

Monitoring Procedures

Regular monitoring to measure the success of the Super G is critical. Weekly staff meetings and monthly sales reports will give the vitals of the product’s progress toward established goals. Quarterly measurements of promotion effectiveness will illuminate the path ahead. The product manager will deliver a quarterly report for top management.

Monitoring Activity

Due Date/Frequency

Responsible Party

Regular review of strategies and earnings with top level management Quarterly Product Manager
Sales report generated and distributed to all management staff Monthly Sales Manager
Product management staff meeting to monitor individual accounts and examine opportunities weekly All product leadership staff, product manager
Review and analyze promotion effectiveness, plan future promotions Quarterly Advertising Manager

 

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